Not to mention Singapore in a more and more likely future. Air NZ's protest that no international airline could profitably operate from Wellington was a bit too vehement to be entirely believable.
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Interesting story on Alan Joyce - King of the Quantas comeback. Bit of competition for CL. http://nzh.tw/11622517
Feeling less grumpy this morning after reading that Joyce is on $12m. One supposes that we need to pay market rates to attract and keep the best talent including share incentive schemes but in my opinion there are too many LTI scheme options out there, about 45m as at 30 June 2015, which represents a whopping 8% of the free float of AIR's shares, excl Govt stake.
What do you really have to do to earn $12m?
Perverse!
The $3 holding at weeks end
Looks good for next week
Airlines are proving once again that they are in a commodities business - same product, same input costs, same planes and little differentiation.
The cheap fuel of late has lead to increased capacity, probably beyond demand.
Put all this together the intense competition results in tumbling airfares. Herald reports us$100 odd AA special LA / AKL and stuff says Singapore adding more flights to CHCH.
I reckon boom profits this year for the likes of AIR (maybe a bit lower than forecast) but then heading back to where airlines usually are - not that profitable
AIR at $3 today - maybe as high as it will go
Hoop possibly is right in saying airlines are notoriously cyclical - mostly of their own making
Is now the top of this current cycle?
AIR are getting their fair share of inbound and outbound growth and enjoying the domestic growth that flows from same.